Government scraps Labour's free personal care plan
20/5/2010
The Government has axed Labour's plan to provide free personal care to about 110,000 more people in England, despite the measure already being on the statute books.
Care services minister Paul Burstow said today that the government would not implement the Personal Care at Home Act 2010's central provision, to give people with high needs free personal care at home. The plans, which the last government estimated would cost £540m a year, drew criticism for being under-costed after they were announced in late 2009. The Association of Directors of Adult Social Services estimated that the total cost could be almost double the former government's estimates.
Source: Community Care.co.uk
Keith Hargraves - Principal of Advice on Care comments
As predicted faced with budget shortfalls the new Government has dropped the last Governments proposals for a national care service. This means that for the foreseeable future people needing residential or nursing care with capital over their country's upper capital thresholds will have to pay for their own care.
To find out more about how you can possibly limit the cost click on care fees annuities.
Promise of a National Care Service for Everyone in England
30/3/2010
The government today released a White Paper on adult social care which sets out their vision for a National Care Service for England and a timeline to achieve it … not until 2015.
Their intention is to create a National Care Service for England which will be free at time of using it, for all adults living in England who need it.
Health Secretary Andy Burnham said Labour's new plan would be completed in three stages.
First Stage
Which should begin in 2011, should see those with the greatest needs, able to get free personal care at home.
Second stage
Would see anyone staying in residential care for more than two years, receiving free care after the second year. However the plans do not mean that all your care costs will be paid for, as people who can afford it will still have to pay for the "accommodation costs" or living costs of living in a care home i.e the cost of food, rent and heating. This will still have to come from savings or either renting out or selling the home providing the spouse still doesn't live in it.
Final Stage
The final stage of reform, which he said wouldn't be until after a further new election in 2015, should mean that all adults in England with an eligible care need, will receive free care when they need it, whoever they are, wherever they live and whatever condition leads to their need for care. This would however have to be paid for in some way which has still got to be decided on.
Keith Hargraves - Principal of Advice on Care comments
Whilst I welcome anything that helps introduce a fair and consistent system and prevents people having to loose their home, it is still far too early for anyone who needs care to feel they can rely on these proposals. Afterall these plans may yet get scuppered by any new government or at least fundamentally altered. Likewise for those who are likely to require care in a residential setting, these plans will not come into effect until at least 2014 but due to the two years clause, will not benefit anyone significantly until at least 2016 and then if you have any significant assets like a home to be taken into account, you will still probably end up having to pay for "accommodation costs". These can easily equal if not exceed the nursing costs which these proposals aim to cover.
New Bill proposed to guarantee free personal care for the 280,000 people with the highest needs
18/11/2009
Queens Speech - “My Government will introduce a Bill to enable the wider provision of free personal care to those in highest care need.”
The main benefits of the Bill would be:
- Guarantee free personal care for the 280,000 people - including those with serious dementia or Parkinson’s disease - with the highest needs.
- Protect the savings of the 166,000 people who currently get free care from future charges.
- Help around 130,000 people who need home care for the first time to regain their independence.
Source evidence – No10.gov.uk 18/11/2009
Keith Hargraves Principal Advice on Care comments - This announcement is only notification of the Governments intention to introduce a Bill about Social Care which may still not become an Act of Parliament before any election. Even if it is passed into Law, it will not help people who need formal residential or nursing care in a care home, as it will only benefit a number of people who can manage to live at home. Also if enacted although it will apply to England and Wales the Government's intention is the policy of free personal care will apply only in England.
Green Paper – Shaping the Future of Care Together
15/7/2009
The Government yesterday issued their proposals for future funding of long term care.
It rules out funding the “minimum care entitlement by taxation” and proposes three options;-
- Compulsory comprehensive model whereby every adult over 65compulsory care scheme where every adult over 65 would pay a lump sum of between £17,000 – 20,000 to guarantee free care in later life The sum would be paid either at retirement or on death.
- A basic partnership model in which the state would pay for up to a third of care costs.
- A voluntary insurance scheme run either by private companies or the Government where adults would receive care providing they have paid an estimated £20,000 - £25,000 in premiums.
The governments preferred choice would be the first. However it would only cover nursing and social care costs not the accommodation costs or for food. This would still need to be paid for by the person needing care or collected after their death
To help fund this, the Government is also proposing to scrap Attendance Allowance.
Keith Hargraves Principal of Advice on Care – Whilst I welcome discussions and any fresh approach on how best to fund care, these are still only proposals and may yet get changed many times before any new rules are implemented. Families should not depend on any quick changes to Long term Care funding. Even if these Government plans do not get affected by the impending election, the Government doesn’t intend making any changes before 2014. Therefore, I strongly recommend that anyone faced with needing care gets professional care fees advice today, as professional care fees planning can do much to minimise costs.
If you would like to receive independent advice on how to ensure continuity of care, and minimise costs, click here
Attendance Allowance
6/4/2009
Attendance Allowance is payable to those over 65 who have been physically or mentally disabled for more than 6 months and need help with their personal care. It is not dependent on assets or income. Should you be below 65 you may instead be entitled to Disability Living Allowance
There are 2 levels of Attendance Allowance, a lower rate if help is required during the day or night, and a higher rate if care is needed both day and night.
Attendance Allowance is not means tested and the benefit is tax-free.
The new levels of attendance allowance for 2009/10 are:
- Lower £47.10 per week
- Higher £70.35 per week
Attendance Allowance will stop after four weeks of entering a Long Term Care home if the local authority is paying for your care. If you are paying for your own care however, or have a Deferred Payments agreement it should continue indefinitely or until your assets dwindle to below the upper Means Test threshold (£23,000, England) 2010 . Should you take out Long term Care Insurance this situation is less likely to occur and the amount received from Attendance Allowance can be added to pension income to reduce the shortfall in care fees cost.
Keith Hargraves Principal of Advice on Care - If you would like to receive independent quotes on an immediate needs annuity to ensure care could continue, click here
Capital Thresholds for Care
6/4/09
Eligibility for Local authority funded care is based on capital. To qualify for any funding, your capital must fall below an Upper Capital Threshold, and you will only receive the maximum local authority assistance if your capital falls below a Lower Capital Threshold.
Below are the new rates for 2009/10 for each of the home nations;-
| England & N. Ireland 2009-10 | Wales 2009-10 | Scotland 2009-10 | |
| Upper capital threshold | 23,000 | 22,000 | 22,500 |
| Lower capital threshold | 14,000 | 20,750 | 13,750 |
| Limit before eligible for deferred payments | 23,000 | 22,000 | 13,750 |
Please note: Even if you qualify for maximum local authority rates, it may not fully fund the cost of any current care home you or a relative is in. In such cases family members will have to make a top up and it would pay to receive professional care fees advice.
Keith Hargraves Principal of Advice on Care - If you would like to receive independent quotes on an immediate needs annuity to ensure care could continue, click here
Registered Nursing Care Contributions 2009/10
Section 49 of the Health and Social Care Act 2001 removed from local authority social services departments, the responsibility for paying for nursing care in care homes. Instead, the NHS became responsible for providing the nursing element of care but not the accommodation or social care elements which are also part of nursing home care.
All residents of care homes providing nursing should undergo an assessment to confirm their need for input from their resident registered nurse to meet their care needs. If applicable, an amount of is then paid by the NHS direct to the nursing home as a contribution towards the weekly fees. This is what is referred to as the Registered Nursing Care Contribution.
This contribution should be reflected in the fees charged by the home to the resident.
The following are the current allowances for nursing in England, Wales and Scotland 2009-10
| England 2009-10 | Wales 2009-10 | Scotland 2009-10 | |
| Registered Nursing Care Contribution | £106.30 per week Anyone who was already on the highest band of the earlier three banded system will receive £146.30 per week. until reassessed |
£119.66 per week | £69.00 per week for nursing, but for anyone also neding personal care they will pay a further £153 per week |
Following an initial decision a review should be undertaken within 3 months and then on an annual basis or more frequently if there is a significant change in the person’s needs to ensure continued eligibility.
Keith Hargraves Principal of Advice on Care - If you would like to receive independent quotes on an immediate needs annuity to ensure care could continue, click here
Pensioners urged to apply for warm home grants
15/02/2008
People receiving Pension Credit are being urged to apply for grants to help insulate their homes against the cold and rising fuel bills.
Following recent well-publicised increases in energy prices, it’s more important than ever that people apply for all the help available to them to make their homes energy efficient and keep the warmth in.
Minister for Pensions Reform Mike O’Brien said: “If you own your own home or rent it from a private landlord, you may be eligible for a free grant to insulate your walls and loft. This is in addition to the Winter Fuel Payment of £200, rising to £300 for people over 80, which has benefited more than 11.6 million pensioners this year.
“The grant is available through the Government’s Warm Front scheme. It’s free to call, so I urge all people getting Pension Credit to ring the Energy Advice Line on 0800 027 7668 to find out if they are eligible for further help.”
Source: DWP Website
Keith Hargraves Principal of Advice on Care - If you would like to receive independent quotes on an immediate needs annuity to ensure care could continue, click here
Rising number of Elderly hitting the NHS
12/12/07
The Office of National Statistics said that in the past year alone, the number aged over 85 had increased by 6% to 1.2 million-or one in every 50. By 2031 it is estimated this number will more than double to 2.9 million.
Experts said the huge increase in over 85’s – in 1981 they accounted for only one in every hundred – would increase pressure on the already overstretched Health Service.
Source: ONS quoted in Daily Mail
Keith Hargraves Principal of Advice on Care - If you would like to receive independent quotes on an immediate needs annuity to ensure care could continue, click here
The cost of care really hit home
26/09/2007
Every year 70,000 elderly people are forced to sell their homes to pay for residential or nursing home fees.
Profits from the sale can easily be swallowed up by nursing homes costing upwards of £25,000 a year and fees rising by 8% - more than double the rate of inflation
Source: Daily Mail
Keith Hargraves Principal of Advice on Care - If you would like to receive independent quotes on an immediate needs annuity to ensure care could continue, click here